KARACHI - “Pakistan’s macroeconomic goals are tied to ‘Make in Pakistan’ and import substitution. With a multiplier effect of 10, auto industry can help contribute to it significantly,” said Ali Asghar Jamali, CEO Indus Motor Company.
The industry has invested heavily in the last 4 decades to establish a local engineering base and we are proud that IMC has been at the forefront of this initiative. We are working on numerous upgrades and new models in coming future with key focus on localization.
“With 36 Technical Assistance Agreements in Pakistan, we have laid the foundation of automobile technology transfer in Pakistan and exponentially contributing to it. This has not only generated employment but also opened doors to export for many local part makers.
It is to be noted that that with more than 60% localization, IMC is procuring local parts worth over 200 million every day from its vendors. He added that the localization has increased with the passage of time due to keen interest by the government and the local auto manufacturers. Higher volumes result in higher localization levels and vice versa. There is 90% chance that what you touch in a Corolla and Yaris is locally manufactured. Such is our commitment to the economic development of the country. He added that Original Equipment Manufacturers’ initiatives in localizing parts of their vehicles has helped the local vendor industry significantly over the years.
“Local vendors and OEMs are working in collaboration for localization,” said Jamali, adding that recently IMC announced an investment of $100 million for localized manufacturing of hybrid vehicles.
“This huge investment is sure to give a boost to the local auto vendor industry while it will also open doors for new hybrid technology,” said Jamali. The $100 million investment will go towards localisation of components, plant expansion and production preparation for the first hybrid electric vehicle to be manufactured at IMC plant. Besides this investment, he added, the IMC has also made an additional investment of $30 million in its plant in order to meet the demand in the post-Covid era. The total industry wide installed capacity has touched 420,000 units annually and it is expected to increase in the foreseeable future with further investments across the industry.